Adani secures USD 10 bn as investor confidence returns

Adani Group has mobilized nearly USD 10 bn in fresh capital and investment commitments within a week, including a major investment from the UAE, marking a sharp turnaround in overseas investor sentiment, Mint reports.

Abu Dhabi’s International Holding Company (IHC) is among the biggest backers, committing USD 5.7 bn for a greenfield aluminum joint venture in Odisha, matching Adani’s investment commitment. Wall Street heavyweights including BlackRock, Blackstone, Vanguard, and Goldman Sachs have backed Adani Enterprises’ USD 1.6 bn qualified institutional placement, in a sign of renewed institutional support.

Multiple funding sources: This includes a planned USD 1.1 bn QIP by Adani Energy Solutions, with a shareholders vote to ratify it on 25 July, and the sale of a 49% stake in the Vizhinjam transshipment port to MSC’s subsidiary for USD 539 mn.

On the heels of dropped charges: The fundraising follows settlement of the group’s major judicial disputes in the US. In June, the US Department of Justice dropped criminal fraud charges against Chairman Gautam Adani, while the US Treasury settled a sanctions-related probe involving Adani Enterprises for USD 275 mn and the US Securities and Exchange Commission resolved a separate civil case for USD 18 mn.